Illinois IFTA Financial Responsibility Bond Guide
In Illinois, all motor fuel carriers must register with the Department of Revenue. Some carriers need to file a surety bond for financial security.
Bond Overview
- Purpose: To ensure interstate motor fuel carriers uphold state regulations
- Who Needs It: Certain motor fuel carriers in Illinois
- Regulating Body: The Illinois Department of Revenue
- Required Amount: The greater of $1,000 or 2x average quarterly tax liability
- Premium Rates: $100 for under $10k coverage, credit-based for $10k+
Keep reading to learn more about how the bonding process works.
What Is an Illinois IFTA Financial Responsibility Bond?
An Illinois International Fuel Tax Agreement financial responsibility bond ensures interstate motor fuel carriers pay required taxes and follow state regulations. The Department of Revenue mandates this type of license and permit bond as a form of financial security depending on the carrier’s payment history and audits.
How Much Do IFTA Financial Responsibility Bonds Cost in Illinois?
The Department of Revenue will calculate your bond amount by doubling the estimated tax liability for a quarterly return, with a $1,000 minimum. If you have a history of payment or tax filing delinquency, the DOR may adjust your bond amount as well.
For coverage under $10,000, the premium is a flat rate of $100. Higher amounts are credit-based. Qualified applicants can pay as little as 1% or less of the total coverage.
Your exact rate will depend on your bond amount and financial qualifications. Apply below to get your free personalized quote.
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does an Illinois IFTA Financial Responsibility Bond Work?
An Illinois IFTA financial responsibility bond is a legally-binding contract between three parties:
- Principal: The motor fuel carrier purchasing the bond
- Obligee: The Illinois Department of Revenue requiring the bond
- Surety: The provider issuing the bond
Under this contract, you, as the principal, are responsible for upholding all regulations under the Illinois IFTA Carrier Compliance Manual.
If you break the bond terms, harmed parties can file claims on the bond. The surety will validate and pay claims up to the full bond amount. However, you are ultimately responsible for refunding the surety.
Who Needs an IFTA Financial Responsibility Bond?
The Illinois IFTA does not require first-time license applicants to provide proof of a surety bond. However, they can ask you to file a bond at any time depending on your compliance with state standards. Failure to file reports on time, pay taxes or pass an audit can affect the bond amount.
Note: We also issue Illinois financial tax responsibility bonds for motor fuel distributors cigarette distributors and alcohol distributors.
How Do I Get an IFTA Financial Responsibility Bond in Illinois?
SuretyBonds.com provides the fastest and easiest way to get an IFTA financial responsibility bond:
- Apply Online: Select your coverage amount and enter your information to receive a personalized quote
- Pay Invoice: Complete your purchase online or over the phone
- Receive Bond: Receive your official bond form via email
Upon receipt, sign and file the bond documentation with the Department of Revenue. You can mail the form to the following address:
Illinois Department of Revenue
P.O. Box 19039
Springfield, IL 62794-9039
How Fast Can I Get My Bond?
SuretyBonds.com issues IFTA financial responsibility bonds faster than any other provider. For coverage less than $10,000, receive your official bond form in minutes by email.
We process most bond applications for higher amounts same-day. Apply now to receive your free quote within one business day or less.
Can I Get Bonded With Bad Credit?
For bond amounts less than $10,000, you don’t need a credit check. For higher amounts, you may still be able to get bonded with bad credit.
Poor credit may affect your premium rate. Apply now to receive your personalized quote, or visit our Surety Bond Cost FAQ page to see how credit may impact your cost.
How Do I Renew My IFTA Financial Responsibility Bond?
IFTA financial responsibility bonds expire annually. When you work with SuretyBonds.com, we’ll send you reminders and a renewal invoice before your bond expires.
Once you pay your renewal premium, we’ll issue a continuation certificate to keep your bond active for another year. File this with the Department of Revenue as instructed.
How to Get an IFTA License in Illinois
The Illinois Department of Revenue oversees IFTA licensure in the state. Licenses are good in every continental U.S. state and most of Canada.
To apply for a license, complete the online application (Form MFUT-12). You will also need to fill out the Illinois business registration application (Form REG-1).
You will receive an application decision after a few days via mail. Once approved, purchase an IFTA decal for each vehicle. Decals cost $3.75.
Who Needs an Illinois IFTA License?
You must register with the Illinois IFTA if you are an interstate motor fuel carrier and meet all of the following conditions:
- Your vehicle is registered in Illinois
- You have a physical business in Illinois
- Your operational records are kept in Illinois
- Your vehicle uses Illinois highways
Contact the Illinois IFTA for further instructions if you or your vehicle might be exempt.
Note: The Department of Revenue recommends applying for a Single Trip Permit instead if you only make occasional trips out of Illinois. STPs cost $40 and are good for 96 hours.
